Correlation Between Hochschild Mining and BioNTech
Can any of the company-specific risk be diversified away by investing in both Hochschild Mining and BioNTech at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hochschild Mining and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hochschild Mining plc and BioNTech SE, you can compare the effects of market volatilities on Hochschild Mining and BioNTech and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hochschild Mining with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and BioNTech.
Diversification Opportunities for Hochschild Mining and BioNTech
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hochschild and BioNTech is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining plc and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Hochschild Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hochschild Mining plc are associated (or correlated) with BioNTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioNTech SE has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and BioNTech go up and down completely randomly.
Pair Corralation between Hochschild Mining and BioNTech
Assuming the 90 days trading horizon Hochschild Mining plc is expected to under-perform the BioNTech. But the stock apears to be less risky and, when comparing its historical volatility, Hochschild Mining plc is 1.43 times less risky than BioNTech. The stock trades about -0.17 of its potential returns per unit of risk. The BioNTech SE is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 11,374 in BioNTech SE on August 27, 2024 and sell it today you would lose (14.00) from holding BioNTech SE or give up 0.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hochschild Mining plc vs. BioNTech SE
Performance |
| Timeline |
| Hochschild Mining plc |
| BioNTech SE |
Hochschild Mining and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochschild Mining and BioNTech
The main advantage of trading using opposite Hochschild Mining and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, BioNTech can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BioNTech will offset losses from the drop in BioNTech's long position.| Hochschild Mining vs. Givaudan SA | Hochschild Mining vs. Antofagasta PLC | Hochschild Mining vs. Centamin PLC | Hochschild Mining vs. Atalaya Mining |
| BioNTech vs. Admiral Group PLC | BioNTech vs. Anglo American PLC | BioNTech vs. Vodafone Group PLC | BioNTech vs. Caffyns PLC |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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